LooPtruy

Hello All

Some questions as a newbie into the potential market of purchasing a flat in Budapest to rent it out. Any help would be more than welcome!!!

-What are the taxes you pay in Hungary for rental income?
-What are the taxes you pay when you buy a property, what is the average percentage of the cost? (Example, in Spain if you buy a flat, they tell you to estimate +-10% of extra price due to notary, taxes, etc)
-What are the taxes to pay if you sell the house afterwards and you make a profit?
-Financing. Do you have any contacts/recommendations for banks in Budapest? I talked to Sberbank asking for a FIXED rate mortgage and they say they do not offer it. I really want to have such a fixed product, but not sure where to get it!

Rural Hungary

Hi Looptruy and welcome to the forum, I have replied to your email.

LooPtruy

Thanks Rural!

If you could, please, send it again to the email I gave you via PM I'd appreciate it!

Your first email never arrived

LooPtruy

Hello All

Looking for Financing options, can I ask the forum members what is your personal experience with these banks? We are looking to get a mortgage to buy a flat in Budapest.

Also, if you have any contacts who speak English well, it would be much, much appreciated!

- CIB:
- MKB:
- Budapest Bank
- Unicredit Bank:
- Citibank:
- OTP:

mohctep

I am with OTP. Last time I checked the closing fees were very low and insurance was included - good deal. Don't remember the rates exactly, but they probably were aound 8-9% for HUF loan. However if you don't work in HU they need a co-signer. The most strange (idiotic) part of banking in Europe is that many banks don't consider the property you already own a sufficient collateral for new loan.

Let me know if you have gotten your mortgage and what were the pitfalls?

LooPtruy

Thanks Mohctep!

So far, didn't get the loan because no bank in hungary seems to offer fixed rate mortgages, which is a pity and is what I am looking for

PaulinEger

We managed to get a fixed rate mortgage last year from FHB. It took a long time (6 months) to arrange and it was a package put together especially for ourselves. Government subsidised for the first 5 years meaning that we were only paying interest during those 5 years but we had to put 2 houses up as collateral.

fidobsa

I think you might find fixed rate mortgages are a thing of the past. If you are needing finance for a buy-to-let property it sounds like a pretty high risk venture anyway.